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JAXX SE focuses German investment business on sports betting

JAXX SE  / Key word(s): Miscellaneous

05.11.2010 11:10
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JAXX SE focuses German investment business on sports betting

- myBet to be developed into a top-3 German sports betting brand
- Leading position among sports betting shops to be strengthened
- Sharper focus to yield savings in the Lotteries segment of around EUR 3
million p.a.
- Personnel levels in Lotteries segment reduced by 30 percent

Kiel, November 5, 2010 - The affiliates of the financial holding company
JAXX SE in Germany will in future concentrate on the sports betting market
and bolster the 'myBet' brand. Investment in the former core business area
of lotteries is to be halted.

The factors behind the strategic repositioning decision are the
surprisingly positive ruling of the European Court of Justice (ECJ) on
September 8, 2010, which opens up new growth prospects particularly in the
sports betting market, and the increasingly difficult environment for
lottery business, which again eroded the earnings of the JAXX Group in the
third quarter of 2010.

At the start of September the ECJ had ruled that Germany's gaming monopoly
was incompatible with European law, thus paving the way for the German
gaming market to be liberalised. 'The ECJ has pushed open a number of doors
- we now need to decide which one to go through,' commented Mathias Dahms,
Management Board spokesman of JAXX SE. 'We are neither able to nor want to
operate in every area of the German gaming market. We believe the biggest
potential lies in the sports betting market, in which our Maltese
subsidiary QED Ventures Ltd. is optimally positioned through its myBet
range. myBet is one of the leading providers in the betting shop sector and
has a strong online brand.'

Since the acquisition of QED in 2006, the JAXX Group's Sports Betting
segment has posted high double-digit growth rates in every year. The
affiliates that handle the products for the German lottery market are to
continue to be run profitably following the liberalisation of the market.
However, JAXX SE no longer intends to invest in expanding this area of
business.

Mathias Dahms continued: 'The interlude of a four-year monopoly has
destroyed the healthy basis for the lottery activities of our affiliates in
the German market. We now plan to turn the focus of our affiliates in this
segment back on profitability and use the profits to support growth in the
other areas. Customers want new products - and sports betting and poker are
streaking ahead of lotteries.'

Because lottery products can only continue to be offered with a sharply
reduced cost basis, personnel levels in the Lotteries segment have been
reduced by 30 percent and marketing budgets drastically curtailed.

Spanish lottery business, in which the 70 percent JAXX affiliate DIGIDIS
S.L. is the market leader, is not affected by the cutbacks and will
continue to be run independently by DIGIDIS' management.

According to Mathias Dahms, 'myBet has the historic opportunity to be a
top-flight player by securing a good starting position in a liberalised
market for sports betting. myBet has a strong brand that already enjoys a
high level of acceptance in the sports betting market. And it has a product
range that is the envy of its competitors. We will now employ financial
means to support myBet in order to bolster its good position and shore up
its position in the face of growing competition. Our aim is to make myBet
one of the top sports betting providers in Germany.'

About JAXX:
 
JAXX SE, listed in the Prime Standard of Deutsche Börse, is a financial
holding company with holdings in international companies in the gaming
industry. JAXX currently holds interests in companies in the UK, Spain,
Austria and Malta. JAXX SE has its headquarters in Kiel. The holding
companies cover the entire spectrum of the games and gambling industry.
Depending on national regulatory structures, they broker or market sports
and horse betting, lotteries, and casino and poker games. The JAXX Group
generated total revenue of EUR 114.5 million in 2009. The shares of JAXX SE
have been traded at Deutsche Börse since 1999 under ISIN
DE000A0JRU67.

Contact:
JAXX SE
Investor Relations & Corporate Communications
Stefan Zenker
Tel. +49 (40) 8537 8847
email stefan.zenker@jaxx.com





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Language:     English
Company:      JAXX SE
              Jägersberg 23
              24103 Kiel
              Deutschland
Phone:        +49 (0)431 88 104-0
Fax:          +49 (0)431 88 104-40
E-mail:       ir@jaxx.com
Internet:     www.jaxx-se.com
ISIN:         DE000A0JRU67
WKN:          A0JRU6
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Hamburg, München, Berlin, Düsseldorf, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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